CASE STUDY: Can One Business Unit Have Two Revenue Models?

Isolde targets the “stuff that machines use”, while Emanuel targets “the machines”. Because of how costly Siiquent’s technologies are to make, only Germany’s biggest hospitals and diagnose labs were able to purchase a handful of them. Thus Siiquent decided to gain profits from the “biological and chemical compounds, test kits, and other consumables.” Furthermore, Siiquent spent a lot of effort ton adjusting offers and taking in customer advices to better suit their market. Teomik focuses on research market. They were able to see patent-protected machines to earn a heavy profit.

The benefits of letting the company continue on its flexible revenue model is that they can cater to consumer preferences, allowing them to alter plans and costs based on each customer’s needs. At the same time, because much of their markets are becoming overlapped due to the expiration of the patients, sales rep begins to reach out to the same audiences causing confusion and thus presenting a sense of chaos of the larger company.

To ensure the fairness of a merger, the first step is to conduct all logistical research. Understand the new business model, how to best reduce cost of operations (cutting down sales people in this case would be a good one given that they have begun reaching out to the same group of audience), create new product packages (perhaps bundles of both “the machines” and the “stuff that the machines use”). Once the preliminary research and analysis is done, I would then access how far we are from status to reach to the desired new business operations. Then I would look at each department’s needs and conclude with personals would be the most appropriate leader for the new business tasks.

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